Deutsche Bank will be paying $170 million following an investor lawsuit settlement, in which the financial entity was accused of conspiracy to rig the Euribor, the benchmark European Interbank Offered Rate, and related derivatives. The preliminary settlement currently awaits a judge’s approval after the document was filed at the U.S. District Court in Manhattan on Monday.
Deutsche Bank is accompanied by HBSC and Barclays Plc, which have been named as the two other accused entities involved in the alleged fraud. Barclays Plc and HSBC will credit investors $94 million and $45 million respectively, according to their court approved settlement agreements. The three banks are accused of allegedly tampering with the Euribor and fixing the prices of Euribor-based derivatives between June 2005 and March 2011. This is a breach of U.S. antitrust law.
Achieving Transparency & Trust in Affiliate MarketingGo to article >>
In February earlier this year, U.S. District Judge Kevin Castel in Manhattan, who is overseeing the legal action, refused to accept the majority of the investors’ claims which were made against other banks. In addition, regulators imposed over $4 billion in penalties against several banks, stated Castel.
Though Deutsche Bank has not verified that it wronged its clients, the financial institution has chosen to credit investors rather than spend more time and money on possible further litigation, according to the court papers. The legal bills alone have reached over $16.8 billion, starting back in 2009.
The Euribor is a euro-based equivalent of Libor, a benchmark utilized to set rates on hundreds of trillions of dollars in credit cards, mortgages, student loans, and other kinds of debt.
In 2015, Finance Magnates covered Deutsche Bank having hired Mark Cullen to fill the position of Global Head of Group Audit.